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Wednesday, 3 June 2015

Petronas to lead industry-wide effort involving 25 PACs

Petroliam Nasional Berhad (Petronas) is leading the Cost Reduction Alliance, Coral 2.0, an industry-wide effort towards cost discipline which involves 25 petroleum arrangement contractors (PACs).

The aim is to inculcate a cost-conscious mindset that will ultimately embrace a structural change Malaysia's upstream business environment.

"This is not a mere cost cutting exercise. Beyond that, it is about ensuring the robustness and sustainability of our business," Petronas' chairman Tan Sri Sidek Hassan said in his speech at the opening ceremony of 15th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2015) today.

Petronas has announced Capex cuts of 15% and Opex cuts of 25%.

"What we can achieve individually, we can achieve even more as an alliance. The sum will definitely be greater than its parts," he said.

In his speech, Sidek described the oil and gas industry as facing a "Tale of Two Cities", as these were the best of times and yet the worst of times for the industry.